According to the Black-Scholes Formula

Multiple Choice

According to the Black-Scholes formula:

A) the value of an in-the-money option will equal the difference between the stock's current price and the strike price.
B) the payoff from an average option is either a multiple or a power of the difference between the strike price and the price they are exercised at.
C) the holder of a basket option has the right to buy or sell the underlying at the highest price it has attained over the life of the option.
D) the price of a call or put option varies with the price of the underlying asset.